Monday, September 27, 2004
Perdue Student Helps Business Save Thousands
SALISBURY, MD---Higher education pays off. Christopher Cott, a student in Salisbury University’s Franklin P. Perdue School of Business MBA Program recently devised a method to save a local distribution company thousands of dollars using procedures he learned in his classes at SU. Cott, a dispatcher for Trinity Transport in Bridgeville, DE, completed his independent study project on cancellation rates for the company. He and Dr. Eugene Hahn, assistant professor of information and decision sciences, identified factors that affect cancellation rates and developed a statistical model to record and sort the company’s data. “Chris developed the model based on his knowledge of the business,” said Hahn. Among other relevant deciding factors, Cott determined that loads yielding higher profit were less likely to be cancelled than those requiring more revenue. Trinity loses money as a broker of outside carriers when a company cancels on its commitment. The problem is nationwide partly because of insufficient trucks, said Ralph Massey, the company’s vice president of Delaware Operations. Trinity has traditionally been a small to midsize company; however, recent growth has propelled the company to the forefront of the transportation industry. Cott helped the company decrease its cancellation rate from 25.4 percent to 18 percent resulting in an $80,000 savings this summer. Trinity can save some $208,000 per year with lower cancellation rates. Solving the company’s problem has helped Cott better perform his duties. “Chris has worked all summer on the project and we are already seeing results,” said Massey. “I am very pleased with what I have seen.” Hahn, who has led one previous independent study during his tenure at SU, was also pleased with the results. He prepares students for their professions by emphasizing practical applications of management science models. Cott graduates in December and plans to stay with Trinity. For more information on the MBA Program at the Perdue School, call 410-548-3983 or visit www.salisbury.edu/schools/perdue/mba.